Gold and Oil Markets Report – 3 Dec 2012

The US January budget has created commotions as investors are uncertain if the fiscal cliff will cause economic damages. Gold and crude prices plunged on Wednesday punctured by fear rumors in the markets but bargain hunting began to pick up trades while the month end closed. However, WTI Crude traded at 88.00 regions on Friday due to slightly bullish sentiment towards month end closing.

Crude Oil

WTI Crude prices closed at 88.88 on Friday after recovering from intra-week 85.37 low. This week, we foresee there will be some selling pressure from 90.00 levels while the market is subject to observations on Middle East tension and Egypt unrest. The downside support still lies at 85.50 areas where investors will be keen for bargain-hunting. Traders should look for opportunity to enter from extreme ends if the trend has been forecast to be in sideways swing.

Gold

Gold prices declined on late Friday night to 1714.00 regions after the trend fizzles out at 1730.00 top. We reckon the yellow metal will be subject to dollar strength and investors’ confidence in coming week to lead the market direction. The initial support is identified at 1705.00 areas which might drive down to 1690.00 lower grounds if violated. Topside resistance remains at 1740.00 levels which should guard the upcoming trend well for the time being.

Silver

Silver prices plunged on Friday from intraday high 24.300 areas and closed at 33.398 for the weekend. This week, we reckon the range is prone to weakness with resistance identified at 33.800 levels. The downside bargain hunting may arise at 33.000 levels as the trend consolidates inside this range. Abandon your long-view from the bottom if the trend pieces beneath 33.000 supports.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Derivatives traded lower and revisited 2360 low levels. The downfall was due to worries on increasing stockpiles and uncertain risk in US & European regions. The February contract closed at 2370 with approximately 20,000 contracts on Friday. This week, we foresee the market will anticipate bearish move and might test 2250 supports while the upside resistance limits at 2480.

Wong is founder and principal consultant of PWForex.com and holds a professional qualification in NASD series 3 and 5 approved by National Futures Association (USA). He was previously attached with Bankers Trust Futures Inc, Barclays ZW Futures and Smith Barney Shearson (Citigroup) Inc.

He is also an active trader and author of 8 Ways to Invest In China’s Emerging Markets. Wong is also columnist for The Star, The Borneo Post in East Malaysia, The Busy Weekly, The Trader’s Journal, The Forex Journal, The Pulses, The Analysts and Capital Asia magazine.

He is a regular speaker on trading topics as well as Master Speaker for the annual Asia Traders and Investors Convention (ATIC).

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